Posted 30th May 2001

International Monetary Fraud?

The Joint Action Committee (JAC), a consortium of NGOs working for people's rights, protested against the policies of the World Bank and International Monetary Fund (IMF), in front of the Bank building under scorching heat here on Friday. Protesters, carrying banners and placards with slogan against World Bank and IMF, called for establishment of an independent national commission on the WB and IMF-sponsored programmes, negotiations for settlement of foreign debt and withdrawal of international lending institution's demand for removal of agriculture subsidies. Some of the protesters with heavy metal chains around their necks, symbolised the shackles imposed on development of poor countries by the policies of the Bretton Woods institutions.

The protesters also carried banners and placards with slogans "IMF: International Monetary Fraud," "World Bank policies: poverty elevation or alleviation," "Pakistan's loans should be written off," "no hard loan to repay soft loan." In a press statement issued on the occasion, the JAC termed the budget-influencing exercise of Bank and the Fund as a violation of Pakistan's national sovereignty and denial of the citizen's right to have participation in decision-making on important issues. Expressing concern about the initiative of World Bank to hold consultations with stakeholders on the new Country Assistance Programme, the JAC expressed doubt about the usefulness of such an exercise in the absence of paradigm shifts and reforms within the Bretton Woods System.

The JAC observed that the impact of lending by World Bank in infrastructure, dams, energy, social services and policy reforms has so far contributed only to increase poverty, destroy environment and multiply the vulnerability of the deprived and poorest sections of the society. In the memorandum presented to the acting World Bank Country Director, Abid Hasan, the committee stressed the need for meaningful dialogue between citizens and the World Bank and the Fund. However, it observed that such a dialogue was not possible without certain pre-requisites that included transparency, full access to information and prior agreement on the nature and content of dialogues.

Calling for the establishment of an independent commission on the IMF and the Bank-sponsored projects, the JAC declared that there was a need for an independent commission, comprising Government representatives, independent experts and representatives of civil society organisations, to assess the developmental effectiveness and performance of the projects, it demanded. Talking to the representatives of the JAC, Abid Hassan, said that the World Bank appreciated the concerns of the civil society organisations. However, they should come up with concrete suggestions for incorporation of their suggestions in the policy making process, he said, adding, the doors of the Bank were open for all stakeholders to hold regular consultations... yeah right.